• The Dow 30 opens higher this morning
• Traders monitor breakouts above 17,871
• Monthly highs reside at 17,916
The Dow Jones Industrial Average (Dow 30) is set to open higher Monday, testing key values of resistance. Day traders will continue to monitor the 17,871 price level, which is represented above by the R4 . A move above this value would be significant as it would allow prices the opportunity to challenge the standing November high at 17,916. It should be noted that today’s range measures 73 points. This means, breakout traders targeting a 1x extension of the range above resistance may begin looking for initial price targets for the Dow 30 near 17.944.
It should be noted that prices have already traversed today’s trading range once after bouncing off price support early this morning at 17,762. In the event that prices fail to breakout, day traders may begin looking for a return towards range bound market conditions below the R3 found at a price of 17,835. In this scenario, traders may again look to target points of support, including the S3 which represents price support.
In the even that prices continue to decline, a full reversal would be realized under today’s S4 at a price of 17,726. A move to this point would challenge the Dow 30’s current uptrend, and potentially signal a broader decline in other international indices.